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The Effects of Aging Populations on U.S. Communities

Author

Listed:
  • Seunghun Chung

    (ILR School, Cornell University, Ithaca, NY 14850, USA)

  • Oudom Hean

    (Department of Transportation, Logistics, and Finance, North Dakota State University, Fargo, ND 58102, USA)

Abstract

As the population in affluent countries has been experiencing rapid aging, understanding its impact on the regional economy has become an important research topic. In this study, we investigate whether regional population aging has affected the economy in the United States. Using instrumental variables based on age structure, we have identified significant positive impacts on employment growth and negative impacts on the population growth rate. Additionally, there was no significant impact on local wages but a positive impact on rent levels. This can be interpreted as evidence that a higher proportion of the elderly population actually enhances local production and consumption amenity levels, as suggested by the spatial equilibrium model. These results imply that regional population aging may not have a significant negative impact on the regional economy.

Suggested Citation

  • Seunghun Chung & Oudom Hean, 2023. "The Effects of Aging Populations on U.S. Communities," Economies, MDPI, vol. 11(11), pages 1-9, November.
    • Handle: RePEc:gam:jecomi:v:11:y:2023:i:11:p:277-:d:1276854
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    References listed on IDEAS

    as
    1. Nicole Maestas & Kathleen J. Mullen & David Powell, 2023. "The Effect of Population Aging on Economic Growth, the Labor Force, and Productivity," American Economic Journal: Macroeconomics, American Economic Association, vol. 15(2), pages 306-332, April.
    2. Carl Gaigné & Jacques‐François Thisse, 2009. "Aging Nations And The Future Of Cities," Journal of Regional Science, Wiley Blackwell, vol. 49(4), pages 663-688, October.
    3. Roback, Jennifer, 1982. "Wages, Rents, and the Quality of Life," Journal of Political Economy, University of Chicago Press, vol. 90(6), pages 1257-1278, December.
    4. Xinrui Wang & Eddie Chi-Man Hui & Jiuxia Sun, 2018. "Population Aging, Mobility, and Real Estate Price: Evidence from Cities in China," Sustainability, MDPI, vol. 10(9), pages 1-13, September.
    Full references (including those not matched with items on IDEAS)

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